Accountant Responsibility Introduction Accountants and auditors help to ensure that firms are run efficiently, public records kept accurately, and taxes paid properly and on time. Accountants analyze and communicate financial information for various entities such as companies, individual clients, and Federal, State, and local governments. The provide accurate information to clients by preparing, analyzing, and verifying financial documents, budget analysis, financial and investment planning, information technology consulting, and limited legal services. They analyze and communicate financial information for various entities such as companies, individual clients, and Federal, State, and local governments (Bureau of Labor Statistics). …show more content…
Legal, Inc.). Third Party Actions/Claims In Marcus Bros. Textiles, Inc. v. Price Waterhouse, L.L.P., 350 N.C. 214 (N.C. 1999), “the Supreme Court of North Carolina held that in order for an auditor to be held liable to a third party, that party must demonstrate: (1) the accountant either (a) knew that the third party would rely on his or her information, or (b) knew that the client for whom the audit report was prepared intended to supply the information to a third party who would rely on that information; and (2) the third party justifiably relied upon the information in its decision concerning the transaction involved or one substantially similar to it. Moreover, auditors owe duty to anyone whom s/he should have reasonably foreseen would rely on the misrepresentations (U.S. Legal.org)”. Most accountants' third-party liability is defined by case law. A few states have passed statutes organizing the common law. For example, Kansas adopted legislation that takes a different approach to an accountant's liability. “For professional negligence to exist, the plaintiff must (a) have engaged the accountant to perform professional services; or (b) the accountant had knowledge of the third
Accountants are responsible in analyzing and assessing the revenue, expenses, reporting financial matters and giving advice about the financial health of their employer. They help their client to know the best way to run a business by tracking and analyzing where does the money of the business go. They also give suggestions on where money could be made and advice in budgeting the money in the business.
Certified Public Accountants handle a variety of jobs and task. They can offer tax income tax preparation and advise to range of clients including individuals, small businesses, and corporations. Some might choose to work as a forensic accountant to investigate accounting fraud that requires reviewing accounting reports, records and systems to expose any evidence of criminal activities. Other might choose a different path like consultation service, because they rather assist in financial matters with a private clients, not-for-profit organizations, government institutions and financial firms.
The profession of accounting is a one that is highly regulated, due to the knowledge and power each accountant possesses. Although an accountants duties differ from one position to the next, the main sectors that accountants pursue are auditing or taxation. Auditing is ensuring the public that the information listed on the financial statements of public companies is free of material misstatements. While taxation is helping people or companies file their tax returns to the federal government or offering tax advice. In the world of auditing, you either follow the Public Company Accounting Oversight Board (PCAOB), for public company audits, or the American Institute of Certified Public Accountants (AICPA), for other entities
a. According to Dictionary.com, an accountant is, “a person concerned with the maintenance and audit of business accounts and the preparation ofconsultant reports in tax and finance”. (Dictionary.com, 2013)
Accounting is the study of how businesses track their income and assets over time. Accountants engage in a wide variety of activities besides preparing financial statements and recording business transactions. These activities include computing costs and efficiency gains from new technologies, participating in strategies for mergers and acquisitions, quality management, developing and using information systems to track financial
We need accountants because they are trained to handle tough financial situations. They know what investments are wise, what we can afford, and how we can increase our wealth.
This case established that an auditor could be sued by a primary beneficiary for damages from negligence. A primary beneficiary is a party that has a direct benefit from the audit. Non-privity parties could also sue for gross negligence. This increased the auditor’s legal exposure to third parties. The SEC of 1934 reflected these changes and many others; one significant change was that auditor’s had a much higher litigation risk due to their new responsibility to third parties.
They require to make many various reports such as assets and liabilities, loss and profit, or other financial documents. Some other tasks they may do is to design accounting systems, financial forms, and instruction manuals for the firm’s accounting and bookkeeping workers to use. They give advice to the companies upon the investment, tax strategies, and risk management. They sometimes can train some other lesser skilled employees. Public accountants work for pubic accounting companies. They usually work for the offices, and they would use the computers as the reference and calculations.
Accountants might give information to an open accountant, who goes about as an advisor, reviewer and duty administration proficient. Partnerships, charities, associations and governments use administration accountants to record and examine money related data of the organizations in which they are utilized. They for the most part prompt organization officials, lenders, stockholders, administrative offices and expense work force. Accountants might likewise work with government authorities who are looking at and keeping up the money related records of the private business for which an accountant is utilized, regarding tax collection and government
The duty of professionals, including accountants, lawyers, and brokers is to provide services by exercising their skills and knowledge in compliance with their respective laws and standards. However, Certified Public Accountants, how their title implies owe a duty to the public, including direct and indirect users of their work. In this case I, the CPA, have several duties to which I may be liable for under civil and criminal liability, including common and statutory law. In this section I will examine any common law liabilities that may be used in this case by both clients and third parties and any defense I may consider.
The auditor’s responsibilities are to audit annual financial statements and internal controls over financial reporting, and reports from the 10-Q quarterly reports. The auditor must also advice on new accounting pronouncements, and consolidating financial statements. (Intel Proxy Statement 2011, 48)
What draws me into the field of accountancy? Why do I want to launch a career as a certified public accountant (CPA)? What is there about numbers, spreadsheets, profit and loss statements, audits, inventory and fiduciary responsibility that appeal me? In this paper I will describe in detail the reasons why I am attracted to this field. Also, what are the duties and responsibilities of a CPA? How available are job openings for a person with the education and experience to work as a CPA? How well to companies compensate those hired as CPAs? These questions and issues will be thoroughly reviewed in this paper.
Accountants are used to support attorneys in obtaining information to support or refute a claim. They also review the information available to make an initial assessment of
Accounting professionals are in very high demand. The nature of work in accounting is so vast an individual would have so many different areas of accounting to choose from. Accounting requires people who can work with complex business structures, computer systems, and financial analysis packages. Accounting work further requires an aptitude for mathematics and the ability to compare and analyze accounting data quickly. Accountants also need to have strong communication skills as they must effectively communicate accounting data to their employers and/or clients. The accounting profession also demands a high level of integrity and morality because the financial data prepared by accountants is used by business managers to run their
witnesses also are included in the case. The primary issue in this case (drawn from actual